Which of the Following Statements About a High Net Profit

question 111

Multiple Choice

Which of the following statements about a high net profit margin is FALSE?

• A) It may mean that you are keeping your operating expenses under control to earn an acceptable profit.
• B) It may mean that your business might need to take on debt to pay its expenses.
• C) It demonstrates how effective your business is at converting sales into profit.
• D) It may mean that you are capitalizing on some competitive advantage that can provide your business with extra capacity and flexibility during the hard times.

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Definitions:

Vision

The faculty or state of being able to see, as well as the perception of the environment and the ability to interpret the surrounding visuals.

Leisure

refers to free time spent away from business, work, domestic chores, and education, as well as necessary activities such as eating and sleeping.

Legitimizing Myths

Beliefs or narratives used to justify and maintain social inequalities or the status quo by presenting them as natural or inevitable.

Inequalities

The condition of lacking equality, particularly in terms of status, rights, and chances.